Eight ILO Member States are located in the Pacific region. Due to their geographic isolation, small populations and domestic markets, and vulnerability to external shocks, these countries face a number of socio-economic challenges. Against this context, as well as the Global Financial and Economic Crisis (GFEC) and climate change, this report examines possible labour market scenarios and discusses relevant policy responses.

This is a background paper for the Tripartite High-Level Meeting: Decent Work for Sustainable Development in the Pacific, 8-9 February 2010 at Port Vila, Vanuatu. It discusses labour market scenarios and policy responses in Pacific Island countries in the context of the GFEC and climate change.

Part I begins with a discussion of recent trends in Pacific Island economies, including a review of economic outputs, macro-economic and micro-economic impacts of the GFEC and other adverse events, as well as the economic policy responses to these events.

Part II also discusses the implementation of strengthened industrial relation systems, labour legislation compliant with International Labour Standards, and improved social protection mechanisms as means to promote sustainable enterprise and economic growth. In discussing skills development, the report pays particular attention to the needs of businesses and young people. The challenges posed to Member States by climate change and the opportunities presented by the promotion of ‘green’ jobs are also discussed.